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Frugal Articles of the Week

By Frugaling 3 Comments

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Reading Nook Photo

Every week I like to feature a few frugal articles that caught my eyes. Curl up in your favorite reading nook and enjoy. Hopefully these encourage you to live frugal lives!

What you don’t know about Internet algorithms is hurting you. (And you probably don’t know very much!) by Caitlin Dewey
The Internet tracks your every move. We know this already. What we didn’t know was just how powerful these tracking algorithms can be. When you visit one website and then go to another, numerous companies track and predict what you’ll ultimately like to buy, view, and share. Sometimes those algorithms go wild!

Why Judging People for Buying Unhealthy Food Is Classist by Wiley Reading
I have done this before, and it’s a big wake up call to anyone who criticizes other people’s dietary choices. When you judge someone for “choosing” less healthy food options, this might be a classist statement. Unfortunately, with global income and wealth inequality, people aren’t taught and don’t necessarily have the resources to “choose” better options.

“How in GOD’s NAME do you spend so little on food??” by J. Money
Over the last few months, I’ve been on an epic challenge to reduce my food and drink budget down to $200 per month. It used to be hundreds of dollars more than that every month. In this article, a family man asks how so many people have reduced their budgets, and what’s a reasonable amount to expect. Great article!

Broke with Privilege by Stefanie O’Connell
Stefanie’s one of my favorite personal finance writers. In this recent article, she talks about income disparity, poverty, and even privilege. I don’t want to ruin the article by explaining it here. Go read it NOW! 🙂

Filed Under: Save Money Tagged With: articles, Broke, Budget, Class, Food, Frugal, healthy, poverty, Privilege, week

Are Private Equity Firms Job Creators? [Video]

By Frugaling 1 Comment

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If you regularly read Frugaling, you know I don’t shy away from the socio-political concerns that hamper people’s ability to save and earn. I’m a firm believer that in our very classist society, some are earning more than their fair share and paying less to the federal government than ever. This feudal system has tragic consequences for the working poor.

In the past, I took aim at the concept of “job creators.” This term has been manipulated and contorted into a Fox News slogan for reverse classism — pitying the 1 percent because they are somehow being threatened. Well finally, someone at CNBC — Jim Cramer, no less — is critiquing the great myth of the American job creator class. Go Jim!

What’s your take, can private equity firms like Carlyle and Blackstone create jobs? Why or why not?

Filed Under: Make Money Tagged With: Class, classism, cnbc, Government, Jim Cramer, Job Creators, jobs, money

Starbucks Reserve Coffee: A Symptom Of Income Inequality

By Frugaling 13 Comments

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Starbucks Reserve Coffee Expensive Income Inequality
Just got a fresh cup of Starbucks Reserve coffee. It only costs $4 per cup!

More companies are moving to two-class business models — catering to a growing divide in income brackets. Essentially, it’s the difference between the dollar-menu and the deluxe package. Look no further than your local Starbucks, where they created an elite status for coffee drinkers. It’s called, “Starbucks Reserve.” Like our broader economy, it’s not made for everyone — intentionally.

Reserve drinks come in a black Starbucks drink sleeves which say, “Exotic, rare and exquisite coffee.” Today, I got to order one because I’m using a free drink reward from a 12oz bag of coffee. In a way, I’m circumventing the traditional class system of drinks.

Before choosing a Reserve coffee, the employee tells me she recommends the fancy-something-sundried-special-faraway-coffee. I’m out of my element, and gladly accept the suggestion. All I know is that I’m drinking something from Hawaii and it’ll be brewed on an $11,000 machine. It’s supposed to be good.

When I look up at the menu board above the employee, I gasp at the price: $3.95 for a tall (12oz) cup. At more than $4 per cup after taxes, the Kona Perry coffee is the most expensive coffee choice by far. A normal cup of coffee at Starbucks is half the price — about $2.

I’m was reeling at the exorbitant price. I thought, “How can someone spend $4 for a cup of coffee?” It’s then that I realize something stupidly simple. The economy is more divided than ever. Perhaps this an oversimplification, but the middle class is quickly disappearing. The popular buzzword is income inequality. Starbucks’s response is a new, atmospheric price structure that caters to the wealthy.

After a couple minutes, the barista says, “Sam, your tall Kona Perry coffee, brewed on the Clover machine, is ready.” I gingerly pick up the coffee and realize they’ve purposely advertised my status/drink to everyone in the building. While smart marketing, I’m frankly embarrassed by the complexity of my order. I feel like apologizing to those around me. “Sorry, it was free, I assure you I didn’t just pay more than $4 for black coffee!”

I take my first sip, and immediately notice how smooth it is. It tastes wonderful. For a moment, I imagine $4 being totally worth the expense (despite being more than my lunch on most days). I take another sip, and smile. I take another sip and realize how nice it is to pretend I’m wealthy for a day. This is the good life — for a moment.

As the drink disappears, it occurs to me that I don’t know how this compares to the lower priced Starbucks coffee. I’m not sure if I’m tasting class or actual quality. Is my mind playing a trick on me? Is the quality all psychological? Whatever the reality, I can’t afford this regularly. It’s a nice treat/aside from the everyday option. I see this as a growing business model for most industries (from airlines to restaurants to hotels). Unfortunately, as the economy becomes more polar and divided, so do consumables. Starbucks Reserve coffees are just a consequence of this income inequality.

Filed Under: Save Money, Social Justice Tagged With: Beans, Class, Coffee, Free, Income, Income Inequality, Kona Perry, money, Reserve, Save Money, Starbucks

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